Agilent Technologies 2025 Q4 Earnings Beats Expectations with 24.4% EPS Growth

Agilent Technologies (A) exceeded expectations in its fiscal 2025 Q4 earnings, reporting $1.86 billion in revenue and $1.53 in EPS. The results align with guidance for FY2026, reflecting confidence in sustained growth despite macroeconomic challenges.

Revenue

Agilent’s total revenue surged 9.4% year-over-year to $1.86 billion, driven by robust demand in its Life Sciences and Diagnostics Markets Segment ($755 million) and Agilent CrossLab ($755 million). The Applied Markets Segment contributed $351 million, rounding out the revenue breakdown. This performance underscores the company’s strength in core markets and strategic investments.

Earnings/Net Income

EPS rose 24.4% to $1.53, outpacing the previous year’s $1.23, while net income grew 23.6% to $434 million. The earnings reflect operational efficiencies and strong revenue growth, positioning Agilent for continued profitability.

Post-Earnings Price Action Review

Following the earnings release, Agilent’s stock edged up 1.12% on the day, 6.28% for the week, and 4.16% month-to-date. The positive momentum aligns with the company’s guidance for FY2026, which anticipates 4-6% core revenue growth and 5-7% EPS expansion. Analysts highlight the stock’s resilience amid market volatility, though caution persists due to global regulatory risks and sector-specific challenges.

CEO Commentary

CEO Padraig McDonnell emphasized Agilent’s “position of strength” for FY2026, citing growth drivers like LC/MS demand, CDMO expansion, and the Ignite operating system. Strategic priorities include innovation (e.g., ProIQ and Alturo columns), customer intimacy, and talent development. McDonnell’s optimism is grounded in the company’s 7.2% core revenue growth and margin improvements, though he acknowledged headwinds in China and academic markets.

Guidance

For FY2026, Agilent projects revenue of $7.3–7.4 billion (4–6% core growth) and non-GAAP EPS of $5.86–6.00 (5–7% growth). The guidance assumes 75 bps of margin expansion, driven by Ignite initiatives and operational efficiencies. CFO Adam Elinoff noted a 14.5% tax rate due to new global regulations, which may impact net income.

Additional News

1. C-Level Changes: Adam S. Elinoff was named CFO, succeeding Rodney, signaling a strategic shift in financial leadership.

2. Analyst Upgrade: UBS upgraded Agilent to “Buy,” citing its growth outlook in pharma and diagnostics.

3. Shareholder Returns: Agilent returned $155 million to shareholders via buybacks and dividends in Q4, while expanding capital expenditures for capacity growth.

Agilent’s Q4 results highlight its ability to navigate macroeconomic pressures, supported by innovation and operational discipline. The company’s FY2026 guidance and strategic focus on core markets position it for sustained growth.